ED Kochi seizes shipyard company's assets worth Rs 120 mn under PMLA

16 May 2024 CW Team

According to an official release from the central agency, the attached properties comprised 35 movable properties, including securities, imported machinery, bank balances, and 2 landing barges valued at Rs 100.07 million, along with 4 immovable properties valued at Rs 20.13 million.

The release stated that on May 10, ED Kochi provisionally attached properties worth Rs 120.20 million, which included 35 movable properties such as securities, imported machinery, bank balances, and 2 landing barges valued at Rs 100.07 million, and 4 immovable properties valued at Rs 20.13 million, from Vipul Shipyard, Goa, Vipul Shipping Engineering Works, Goa, and its directors under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

ED initiated the investigation based on a charge sheet filed by CBI, under various sections of IPC, 1860, which are scheduled offences under the Prevention of Money Laundering Act, 2002.

It was observed from the charge sheet filed by CBI, Cochin, that during the period of 2004-2010, JVS Rao, the then Vice President, SCIL Mumbai, had entered into a criminal conspiracy with Vipul Shipyard, Goa (VSPL), and its directors regarding the awarding of Ship Building contracts to VSPL, Goa, for constructing six 200-passenger capacity landing barges for Union Territory Lakshadweep (UTL).

In pursuance of the said criminal conspiracy, a ship-building contract was awarded to an ineligible firm, namely VSPL, Goa, which had not participated in the tender process, had inadequate infrastructure, insufficient financial position, and lacked any previous experience in the construction of similar vessels.

Consequently, VSPL, Goa, failed to construct the landing barges following the technical specifications (the length of the draft increased from 0.7 meters to 1 meter, and the speed reduced from 8 Knots to 5 Knots), and as a result, the vessels could not meet the buyer's requirements. Furthermore, the builder was unable to deliver the vessels within the stipulated period, and currently, the vessel remains in the custody of the builder. This resulted in a revenue loss of approximately Rs 120.20 million sustained by the PSU.

ED's investigation revealed that the accused entity and its directors fraudulently obtained the shipbuilding contract from SCIL by forging documents and thereby received nearly Rs 120.20 million from SCIL without renewing the bank guarantee.

The Enforcement Directorate's Kochi Zonal Office announced that properties valued at approximately Rs 120.20 million had been attached from the shipyard company under the provisions of the Prevention of Money Laundering Act (PMLA). According to an official release from the central agency, the attached properties comprised 35 movable properties, including securities, imported machinery, bank balances, and 2 landing barges valued at Rs 100.07 million, along with 4 immovable properties valued at Rs 20.13 million. The release stated that on May 10, ED Kochi provisionally attached properties worth Rs 120.20 million, which included 35 movable properties such as securities, imported machinery, bank balances, and 2 landing barges valued at Rs 100.07 million, and 4 immovable properties valued at Rs 20.13 million, from Vipul Shipyard, Goa, Vipul Shipping Engineering Works, Goa, and its directors under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. ED initiated the investigation based on a charge sheet filed by CBI, under various sections of IPC, 1860, which are scheduled offences under the Prevention of Money Laundering Act, 2002. It was observed from the charge sheet filed by CBI, Cochin, that during the period of 2004-2010, JVS Rao, the then Vice President, SCIL Mumbai, had entered into a criminal conspiracy with Vipul Shipyard, Goa (VSPL), and its directors regarding the awarding of Ship Building contracts to VSPL, Goa, for constructing six 200-passenger capacity landing barges for Union Territory Lakshadweep (UTL). In pursuance of the said criminal conspiracy, a ship-building contract was awarded to an ineligible firm, namely VSPL, Goa, which had not participated in the tender process, had inadequate infrastructure, insufficient financial position, and lacked any previous experience in the construction of similar vessels. Consequently, VSPL, Goa, failed to construct the landing barges following the technical specifications (the length of the draft increased from 0.7 meters to 1 meter, and the speed reduced from 8 Knots to 5 Knots), and as a result, the vessels could not meet the buyer's requirements. Furthermore, the builder was unable to deliver the vessels within the stipulated period, and currently, the vessel remains in the custody of the builder. This resulted in a revenue loss of approximately Rs 120.20 million sustained by the PSU. ED's investigation revealed that the accused entity and its directors fraudulently obtained the shipbuilding contract from SCIL by forging documents and thereby received nearly Rs 120.20 million from SCIL without renewing the bank guarantee.

Building Material

18 Sep 2025

Ambuja Cements Drags JSW Cement to Court Over ‘Kawach’ Brand

Ambuja Cements, part of the Adani Group, has filed a trademark infringement case against JSW Cement in the Delhi High Court, alleging that its rival copied the ‘Kawach’ brand with its new product ‘Jal Kavach’.Justice Manmeet Pritam Singh Arora issued summons to JSW Cement and its subsidiary, JSW IP Holdings Pvt Ltd, while referring the matter to mediation. Hearings are scheduled to resume on October 15 if no settlement is reached.Ambuja, which registered the ‘Kawach’ trademark in 2019, argues that the term ‘Kavach’—meaning shield—is the distinctive feature of its branding. ..

Technology

18 Sep 2025

Bentley Systems Named Innovation Partner of the Year 2025 by Afcons

Bentley Systems, the infrastructure engineering software company, has been recognised by Afcons Infrastructure Limited as its Innovation Partner of the Year 2025 at the Innovation Partners 2025 Felicitation Ceremony in Mumbai. The award acknowledges Bentley’s contribution to Afcons’ engineering digitalisation journey through an enterprise agreement providing access to over 250 Bentley engineering software tools. This adoption has enabled Afcons to accelerate project delivery, standardise digital workflows, and strengthen innovation across its infrastructure portfolio. Among key i..

Infrastructure Urban

18 Sep 2025

SBI Sells 13.18% Stake in Yes Bank to Japan’s SMBC

State Bank of India (SBI) has completed the sale of a 13.18 per cent stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for over Rs 8,889 crore. The divestment is part of a Rs 13,482 crore deal finalised in May with SMBC and seven private banks.Following the transaction, SBI’s shareholding in Yes Bank stands at 10.8 per cent. The deal, involving 4,134.4 million shares at Rs 21.50 each, is the largest cross-border transaction in the Indian banking sector.SBI Chairman C S Setty described the 2020 RBI-led rescue of Yes Bank as a pioneering public-private partnership, addi..